Today: 24 October 2025
Subscribe
Western Digital (WDC) Stock Soars in 2025: SanDisk Legacy & 2026 Outlook
 ·  ·  ·  ·  · 

Western Digital Stock Rockets on AI Data Boom — Analysts Eye Even Bigger Gains

by
23 October 2025
  • Stock Surge: WDC closed at $126.63 on Oct. 23, up ~5.1% [1], extending a rally that has nearly doubled the share price in 2025 [2].
  • Strong Financials: In Q4 FY2025 Western Digital reported $2.61 billion in revenue (+30% YoY) [3] and positive free cash flow; management expects Q1 FY2026 sales to rise ~22% YoY [4].
  • AI/Market Drivers: The surge is fueled by booming AI and data-center demand. Western Digital says it will raise HDD prices and has opened a new AI-focused test lab, reflecting “storage is the foundation of the AI data-driven economy — and HDDs remain its backbone” [5] [6].
  • Bullish Analyst Take: Dozens of analysts have hiked targets. Loop Capital and Wells Fargo each upped targets to ~$150 [7], Bank of America to $145 [8], Citigroup to $135 [9], Wedbush to $135 [10], and even Evercore as high as $190 [11]. Morgan Stanley recently named WDC a “Top Pick” [12].
  • Peer Rally: Western Digital’s peers are also booming. Seagate (STX) stock hit record highs (up 7.7% on one day in mid-Sept) after similar price hikes [13], and memory-chip maker Micron (MU) has more than doubled in 2025 on AI-driven demand [14] [15].
  • Outlook: WDC will report FY2026 Q1 earnings on Oct. 30 [16]; Wall Street consensus sees continued growth. (The average WDC price target is around $127 [17].)

Western Digital’s stock has been on a tear, climbing sharply in mid-October. On Oct. 23 it closed at $126.63, up 5.1% for the day [18], and roughly double its price at the start of 2025 [19]. The rally reflects strong industry demand: Western Digital says the exploding need for AI and cloud storage is driving customers to hoard high-capacity hard drives. In fact, the company announced in mid-October that it will raise prices across its HDD product line to manage “booming demand” [20]. CEO Irving Tan and other executives have repeatedly stressed that “HDDs will continue to remain the foundation of the world’s data infrastructure” in an AI-driven era [21] [22]. To support enterprise customers, Western Digital even opened an expanded AI-focused System Integration and Test lab to speed development and deployment of its drives [23].

This surge follows strong fundamental results. In its latest quarter (ended June 27, 2025), WDC generated $2.61 billion in revenue, a 30% year-over-year jump [24]. The company swung back to profitability and improved margins, after a 2022–2023 downturn, and initiated shareholder returns – a new $0.10 quarterly dividend and a $2 billion share buyback plan [25]. Management guided that fiscal Q1 2026 revenue should rise about 22% annually [26], reflecting a continuation of the recovery. With debt reduced and cash flows strong, Western Digital is positioning itself for the coming demand wave.

The market reaction has been overwhelmingly positive. Western Digital and its peers have become some of 2025’s hottest stocks. For example, on Sept. 15 WDC jumped 4.8% to a record high after news it would lift drive prices [27]. Seagate shares spiked 7.7% that same day [28] on similarly optimistic AI outlooks. Memory-chip makers are surging too: Micron’s stock has more than doubled this year [29]. Analysts say these are classic “pick-and-shovel” plays – hardware makers supplying the data center backbone for AI.

Wall Street analysts have raced to raise their expectations. Wedbush in mid-October lifted its WDC target to $135 (from $90), noting an “underlying shortfall in supply” of drives that should persist [30]. Loop Capital and Wells Fargo each boosted targets to about $150 [31], Bank of America to $145 [32], and Citigroup to $135 [33]. Morgan Stanley went further, recently calling WDC a “Top Pick” for investors [34]. Even conservative houses have raised marks – UBS moved its target to $135 (from $85) [35] and Goldman to $130 [36]. Overall, analysts’ average target (≈$127) remains modestly above current prices [37], but many see room for more upside if AI demand stays robust.

By contrast, Western Digital is already trading at elevated valuation multiples. Its forward P/E is roughly 23× [38], and its price-to-sales ratio is about 4.5× (the S&P tech median is roughly 2.3×) [39]. Simply Wall St. notes the high P/S reflects extremely optimistic growth expectations [40]. Still, most investors now bet that strong AI and cloud data trends will justify these lofty levels.

Outlook: Looking ahead, Western Digital’s next earnings (Q1 FY2026) will be closely watched when announced Oct. 30 [41]. Analysts expect continued double-digit revenue growth [42]. Many Wall Street strategists remain bullish on this “AI infrastructure” theme. If WDC’s near-term momentum persists, the stock could stretch toward the high end of analysts’ forecasts. Even so, some caution the rally may temper: valuation is rich, and any slowdown in data-center spending or renewed competition could introduce volatility. For now, however, Western Digital is riding the AI-driven data boom, and investors are eagerly watching how far this storage-stock surge can go.

Sources: Western Digital Q4 earnings press release [43] [44]; Business news and analyst reports [45] [46] [47] [48] [49] [50]; Financial data from Investing.com [51] and marketscreener [52] [53].

WDC "Old Tech" Evolving with A.I., NVDA & AMD Still Important Holdings
Watch this video on YouTube.

References

1. www.investing.com, 2. ts2.tech, 3. ts2.tech, 4. ts2.tech, 5. www.chartmill.com, 6. www.investopedia.com, 7. www.marketbeat.com, 8. www.marketbeat.com, 9. www.marketbeat.com, 10. www.investopedia.com, 11. www.marketscreener.com, 12. ts2.tech, 13. www.investopedia.com, 14. www.investopedia.com, 15. www.investopedia.com, 16. www.stocktitan.net, 17. www.marketscreener.com, 18. www.investing.com, 19. ts2.tech, 20. www.investopedia.com, 21. www.stocktitan.net, 22. www.chartmill.com, 23. www.chartmill.com, 24. ts2.tech, 25. ts2.tech, 26. ts2.tech, 27. www.investopedia.com, 28. www.investopedia.com, 29. www.investopedia.com, 30. www.investopedia.com, 31. www.marketbeat.com, 32. www.marketbeat.com, 33. www.marketbeat.com, 34. ts2.tech, 35. www.marketscreener.com, 36. www.marketscreener.com, 37. www.marketscreener.com, 38. www.marketbeat.com, 39. simplywall.st, 40. simplywall.st, 41. www.stocktitan.net, 42. ts2.tech, 43. ts2.tech, 44. www.stocktitan.net, 45. www.investopedia.com, 46. www.marketbeat.com, 47. www.chartmill.com, 48. www.investopedia.com, 49. www.marketscreener.com, 50. simplywall.st, 51. www.investing.com, 52. www.marketbeat.com, 53. www.marketscreener.com

Tags:

Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

  1. Intel vs. AMD Stock Faceoff: Who’s Winning the AI Chip Race? (Record Highs & Wild Deals)
  2. IonQ vs Rigetti Computing vs D-Wave Quantum Stocks on October 23, 2025
  3. Microsoft vs. Oracle Stocks: AI Frenzy Sends Shares Soaring – Which Tech Titan Will Win?
  4. Stock Shock: Volvo Cars Surges 40% on Profit Beat, Ford’s Wild Ride Continues

Related Articles

Vertiv (VRT) Stock Skyrockets on AI Boom – Will the Rally Continue?
Previous Story

Vertiv (VRT) Stock Soars on AI Data-Center Frenzy – What’s Driving the Rally?

Valero Energy Stock Skyrockets on Blowout Q3 Results – What’s Next for VLO?
Next Story

Valero Energy Stock Skyrockets on Blowout Q3 Results – What’s Next for VLO?

Stock Market Today

  • Vanguard Information Technology ETF Concentrates Exposure in Nvidia, Apple and Microsoft
    October 23, 2025, 6:44 AM EDT. Investors eyeing broad exposure to the information technology space can take a straightforward route with the Vanguard Information Technology ETF (VGT). The ETF spreads across about 314 stocks in 12 sub-sectors, giving investors access to a diversified tech cohort without picking winners. Still, the fund's top holdings dominate: Nvidia, Apple and Microsoft account for about 43.6% of the portfolio, with weights of roughly 17.16%, 13.35%, and 13.09% respectively. The semiconductor segment, the largest sleeve at about 31.3%, reflects Nvidia's surge and AI-driven demand. Top contributors also include Broadcom, Oracle, Palantir and Cisco, illustrating how AI, data centers, software and cloud services shape the lineup. For AI-era tech exposure, VGT offers a simple, liquid vehicle.
  • AAK AB Q3 Profit Rises on 3% Sales Growth as Volumes Decline; Outlook for 2030
    October 23, 2025, 6:48 AM EDT. AAK AB reported a Q3 profit uptick as net sales rose 3% on stronger demand, though volumes fell. Profit attributable to shareholders reached SEK 909 million, with EPS at SEK 3.49 and pre-tax profit at SEK 1.22 billion. Net sales climbed to SEK 11.50 billion. By segment, Chocolate & Confectionery Fats rose 11% to SEK 3.90 billion, while Food Ingredients were flat at SEK 7.09 billion; Technical Products & Feed declined 10% to SEK 509 million. Total volumes dropped 7% to 510k tonnes (down 2% excluding Hillside). The group remains optimistic about its long-term 2030 ambitions. On the Stockholm bourse, the stock traded around SEK 266.60, down 0.23%.
  • XRP Price Forecast: Ripple Could Reach $7.50 by 2035
    October 23, 2025, 6:50 AM EDT. Across a $3 trillion crypto market, XRP bulls expect a sustained uptrend. The author's target around $7.50 by early 2035 implies about a 240% total return over the next decade and roughly 13% annualized gains. The case rests on XRP's role as a faster, cheaper cross-border payments option on the Ripple XRP Ledger and potential bank and fintech adoption. A shift toward spot XRP ETFs could unlock demand from retail and institutional investors by listing XRP on traditional exchanges, reducing crypto-exchange friction. If adoption expands and regulatory paths clear, XRP could attract more capital even amid ongoing crypto volatility.
  • Nu Holdings' Global Expansion and Profit Ramp Point to a Bold Five-Year Outlook
    October 23, 2025, 6:54 AM EDT. Nu Holdings is accelerating growth across markets and products. The company continues to add customers at a rapid pace and is expanding into new markets, while monetizing existing users with additional products. Despite macro headwinds in Brazil, its credit business is thriving. In 2025 Q2, Nu added 4.1 million customers (up 17% YoY), bringing totals to 122.7 million, including 107 million in Brazil - over 60% of the adult population. Growth is accelerating in Mexico and Colombia, and an eye toward the U.S. bank charter could broaden scale. Revenue rose 40% YoY (currency-neutral). ARPAC climbed 18% to $12.20, while cost to serve fell to $0.80. With ongoing cross-selling, double-digit revenue growth and rising margins look sustainable over five years.
  • Asian Shares Mixed in Cautious Trade as US-China Tensions Weigh on Markets
    October 23, 2025, 6:56 AM EDT. Asian markets closed mixed as investors weighed US-China tensions and mixed earnings, including a sharp drop in Tesla's profit. A White House official signaled export restrictions on China using U.S.-made software, ahead of a Xi-Trump meeting next week. Shanghai Composite +0.22% to 3,922.41; Hang Seng +0.72% to 25,967.98; Nikkei -1.35% to 48,641.61; Topix -0.39% at 3,253.78; Kospi -0.98% to 3,845.56. Australia edged higher; NZX-50 +0.53%. The dollar firmed; gold drifted below 4100; oil rallied over 3% after sanctions on Russia. U.S. stocks slid on Netflix and Texas Instruments results, with the S&P 500 and Nasdaq lower as investors awaited inflation data and the Fed outlook.
Go toTop